Until relatively recently, generation of electricity with wind and solar has not been cost competitive. Growth has largely been due to subsidies and renewable energy mandates. Due to decreasing cost, wind and solar are now cost competitive with fossil fuels in favorable locations. The continuing decrease in wind and solar costs is a very positive development. However, this trend may reverse as the percentage of variable renewable energy (VRE) – energy that isn’t available on-demand but only at specific times, such as when the wind is blowing– reaches high levels. Countries such as Germany that have integrated significant amounts of wind and solar have already seen price increases.
Forbes 24th Jan 2017 read more »
Renewable power will be the fastest-growing fuel source over the next two decades, with output more than quadrupling by 2035, BP believes. Wind, solar, biomass and geothermal electricity account for about 7 per cent of global power generation. However, that is forecast to increase to almost 20 per cent by 2035, as renewables grow faster than other electricity sources at 7.6 per cent a year, the oil major said in its annual Energy Outlook report. China will add more renewable power than the European Union and the United States combined as it restricts its use of polluting coal, BP said. The strong growth forecast was “underpinned by the view that the competitiveness of both solar and wind power improves significantly”.
Times 26th Jan 2017 read more »